The saga with UOB Malaysia continues to unfold. After several conflicting impressions, it is now confirmed that the UOB Visa Infinite has been devalued.
View the full announcement here.
However, what's particularly noteworthy about this development is that UOB has decided to devalue its entire portfolio of points-based credit cards. As a result, every UOB credit card previously reviewed on Refined Points has now effectively been downgraded.
In my earlier articles covering the UOB Visa Infinite's devaluation and subsequent reassessment, I cautioned readers to anticipate an imminent devaluation, suggesting that the "mistake" UOB made was, in fact, a precursor to this outcome.
My Previous Articles on UOB's Flipflop:
UOB Cheekily Devalues Its Visa Infinite (August 16)
Why the Standard Chartered Journey Deserves a Second Look (August 17)
Wow | UOB Reverses Visa Infinite Devaluation (August 19)
The UOB PRVI Miles Elite | Is it Still Worth It? (August 31)
In some ways, having this devaluation finalized allows us to strategize and plan our credit card usage more effectively.
The most significant takeaway from this announcement is that the devaluation affects several other UOB credit cards, necessitating a reassessment of the optimal strategies for leveraging these cards.
For instance, the UOB devaluation has rendered several cards, such as the UOB PRVI Miles, UOB World Card, and UOB PRVI Miles Elite (which I have already covered), less valuable. Let's dive deeper into why this is the case.
UOB's Visa Infinite Dilemma
Let's begin with the UOB Visa Infinite, a card we've discussed extensively.
The latest devaluation raises the minimum threshold from 9,000 UNIRM to 12,000 UNIRM, thereby reducing the value of the Visa Infinite despite its 10X UNIRM offer. Interestingly, the UOB Privilege Banking Visa Infinite has also been slightly devalued, while the top-tier UOB Visa Infinite Metal Card has actually increased in value.
With an impressive 2 MPR on overseas spending with no cap, it arguably stands as one of the best credit cards in Asia for accruing airline miles. However, it remains to be seen how sustainable this will be, given that most high-income users typically pay their credit card balances in full, leaving little room for UOB to benefit financially from this enhancement. While this move may seem puzzling, holders of the UOB Visa Infinite Metal Card are likely to be pleased with the changes.
The UOB PRVI Miles Elite: A Card in Decline
As discussed in a previous article, the UOB PRVI Miles Elite has become increasingly less relevant, especially when compared to the more attractive benefits of the UOB Visa Infinite, particularly for dining expenses.
While the UOB PRVI Miles Elite card does offer supplementary lounge access, this perk is outweighed by other credit cards that offer superior lounge access benefits. This raises the question of whether the RM600 annual fee for the UOB PRVI Miles Elite is justifiable.
Should You Cancel the UOB World Card?
One of the more surprising outcomes of this recent devaluation is the impact on the UOB World Card.
UOB Malaysia has increased the minimum UNIRM conversion threshold for mid-range credit cards like the UOB World Card and the UOB PRVI Miles Visa Platinum from 15,000 UNIRM to 20,000 UNIRM.
While I won't delve deeply into the UOB PRVI Miles Visa Platinum here, as it was already considered one of the least favorable cards on the market, the devaluation of the UOB World Card is noteworthy.
Previously, the UOB World Card offered a unique, though not particularly competitive, 0.33 MPR on grocery spending, which was notable for a card in the RM60,000 annual income range.
Now, with the devaluation, the return has diminished to a mere 0.25 MPR on groceries. Even though the card still offers 12X UNIRM for e-wallet reloads (equivalent to 0.62 MPR), the restrictive RM300 monthly cap makes this benefit less attractive.
For many, the Alliance Bank Visa Infinite may now present a more compelling alternative. In fact, the Hong Leong Bank Sutera Visa Platinum is now even more attractive than ever, offering unlimited points for both groceries and E-Wallet reloads!
Some might argue that the UOB World Card retains value when paired with other high-end UOB Malaysia credit cards, such as the UOB Visa Infinite or UOB Zenith World Elite, to leverage a lower UNIRM conversion rate.
While the UOB Zenith World Elite still has unique advantages, the high annual fees associated with maintaining multiple cards make this strategy impractical for many, particularly when factoring in the possibility of recurring annual fees. In simple terms, the complexity and cost outweigh the benefits.
Implications for Competitors
As I went through your insightful emails while going for my morning walk in the UK—I found many compelling suggestions.
While the devaluation of UOB's premium credit cards was somewhat anticipated, the significant 33% devaluation for mid-tier cards like the UOB World Card and UOB PRVI Miles Visa Platinum was unexpected. With these cards no longer offering competitive value for airline miles accrual, and the potential benefits of pairing these cards with others in the UOB portfolio becoming less clear, it may be time to reconsider your entire credit card strategy.
My recent article on the Standard Chartered Journey card is more relevant now, particularly for users with a reduced annual income requirement of RM90,000. Furthermore, two cards that stand out as the biggest beneficiaries from UOB's devaluation are the CIMB Preferred Visa Infinite and the CIMB Visa Infinite.
The CIMB Preferred Visa Infinite presents a compelling value proposition, especially with the availability of Avios, which I consider much more valuable than Enrich Miles, Asia Miles, and even KrisFlyer due to the limited availability.
With CIMB now offering KrisFlyer redemptions, the card's 0.53 MPR for dining expenses is quite impressive, outperforming the UOB Privilege Banking Visa Infinite, which now offers 0.5 MPR post-devaluation.
Moreover, CIMB's tiered bonus structure can boost earnings up to 0.76 MPR on KrisFlyer and Avios, provided the minimum spend requirements are met. This makes it nearly as attractive as the 3 million AUM UOB Visa Infinite Metal Card.
As for the CIMB Visa Infinite, I now view it as one of the best options for airline miles accrual for those in the RM60-90k annual income bracket. Although it offers a base rate of 0.33 MPR on dining, this rate can climb to 0.64 MPR depending on your spending, thanks to its tiered bonus structure.
I intent to dive deeper on the implications of these changes in a future article only available to my subscribers.
Final Thoughts
This recent wave of devaluations from UOB Malaysia has certainly reshaped the landscape for credit card holders, especially those focused on maximizing airline miles. It's clear that UOB's recent adjustments have diminished the value proposition of several of its credit cards, prompting a reconsideration of optimal strategies for miles accrual.
For those holding multiple UOB cards, it may be time to evaluate the practicality and cost-effectiveness of maintaining these cards, especially given the reduced rewards and increased complexity involved. Conversely, competitors like CIMB and Standard Chartered are stepping up with more attractive offerings, particularly for those focused on dining or travel-related expenses.
As always, it's crucial to stay informed and adaptable, ensuring your credit card strategy aligns with your personal financial goals and lifestyle. With ongoing changes in the market, now is the perfect time to reassess your credit card portfolio to ensure you're maximizing your rewards and benefits.
At the time of writing, I have updated all my Ultimate Guides. You can view them here.
